QUESTION 2 (GROUP 2)

Advise the parties in the following situations:

a) Musa,17 is in senior six at St Mary’s Kitende. Last week, he
entered a shop along Entebbe road and purchased on credit a flat
iron, two pairs of trousers, three shirts, two fancy suits for a total
of 3,000,000. He had always visited the shop with his mother, who
is wealthy business woman operating on the Dubai-Kampala route.
He was supposed to pay within two weeks but he has failed to pay.

b) Sarah, 17 and daughter of a member of parliament in LL.B I, hired

a self-drive car at 100,000 from Belex Taxis Ltd in order to
transport her luggage (one suit case) from Wandegeya to her hostel
in Kikoni near Makerere. She promised to pay within two days. She
signed a document which stated as follows: The hirer of any of our
motor vehicles shall be absolutely liable for any damage to the car
whether or not caused by his or her negligence. Half way through
the journey, the vehicle knocked a boda-boda motor cycle. The
owner has demanded compensation of shs 500,000. Jane has
refused to pay for the car and damage to the boda-boda.

Part B
‘A contract is an agreement made with the free consent of parties
with capacity to contract for a lawful consideration and with a lawful
object, with the intention to be legally bound’ (section 10 (1) of the
Contracts Act, 2010).